Retiring at 62 is one of the most common goals among Americans—but it’s also one of the most misunderstood. The question isn’t just “Can I retire?” but “Can I retire comfortably and sustainably?”
Step 1: Know Your Annual Spending Needs
Start with your real lifestyle costs:
- Housing
- Healthcare
- Food and transportation
- Travel and leisure
- Taxes
Most households underestimate spending by 10–20%.
Step 2: Identify Your Guaranteed Income
At 62, Social Security is reduced, and pensions may also be lower. Your guaranteed income may include:
- Social Security
- Pension payments
- Annuities
- Part‑time work
The gap between spending and guaranteed income determines how much you must draw from savings.
Step 3: Calculate Your Required Savings
A simple rule of thumb:
You need 25–30 times your annual spending gap to retire comfortably.
Example:
If you need $40,000 per year from savings, you may need $1M–$1.2M invested.
Step 4: Consider Healthcare Before Medicare
Retiring before 65 means you must bridge the gap until Medicare begins. Marketplace plans can be expensive, so this must be part of your plan.
Step 5: Stress‑Test Your Income
A strong plan should hold up under:
- Market downturns
- Inflation
- Unexpected expenses
- Longevity risk
If your plan only works in “perfect” conditions, it’s not ready.
Call to Action:
If you’re thinking about retiring at 62, we can run a personalized analysis to show whether you’re truly ready—and what steps can get you there.